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The RRG Blog has a Resources and a Commentary category. Commentary is only visible for registered and logged in users.

Julius de Kempenaer is the creator of Relative Rotation GraphsTM together with Trevor Neil he will write the blog entries for the RRG-free and the RRG-pro blog sections of this site. If you are looking for specific subjects or would like Julius to contribute on a speific subject, at least loosely related to RRG or Relative Strength in general,...

Julius de Kempenaer is the creator of Relative Rotation GraphsTM together with Trevor Neil he will write the blog entries for the RRG-free and the RRG-pro blog sections of this site. If you are looking for specific subjects or would like Julius to contribute on a speific subject, at least loosely related to RRG or Relative Strength in general, please post your question in the forum or send julius a direct message.

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Yesterday's Impact on Sector Rotation










Yesterday's (6/11/2020) big drop in the S&P did not cause any weird hooks or unexpected rotations on the Relative Rotation Graph.

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This is what resistance looks like!


A lot of, very educated, people want us to believe that the market is a random walk. And you know... Maybe sometimes it is, but not always.

This morning I ran into the chart of PFE again. I was monitoring that chart since I wrote about it in a previous DITC article here. The good news is that the resistance area between $38.50 - $39.00 was never taken out. So no harm done. The bad news is that it is now becoming increasingly unlikely that this barrier will be taken out anytime soon.

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Sector Spotlight: The Turn of the Tail


On this episode of Sector Spotlight, after a quick overview of asset classes and sector rotation, I dive into the mailbag and answer three questions. One of them shows two quantitative studies involving expected returns after a tail turning into a 0-90 degree heading.

This video was originally broadcast on June 9th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight webpage, or click this link to watch on YouTube.

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Time to Sell MSFT and AAPL?



The recovery of the Technology sector out of the March low has been in line with the S&P 500, only 1.5% better. With its strong (out)performance in the run up to the February peak and the less disastrous decline into March, XLK remained at the right hand side of the Relative Rotation Graph vs SPY.

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Sector Spotlight: Seasonality Suggests XLV over XLF for June


On this episode of Sector Spotlight, I take a look at the longer-term picture for asset Classes and sectors using monthly bar-charts, then show how sometimes a shift to a line chart may give you even more insight. After this, I move on to combining the current RRG rotations with expected seasonal performances to find alignment for Health Care (positive) vs Financials (negative).

This video was originally broadcast on June 2nd, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight webpage, or click this link to watch on YouTube.

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Seasonality Prefers Health Care over Financials in June













In this week's episode of Sector Spotlight (Tuesday 10.30-11.00am ET), I ran out of time to review outstanding pair-trades so I am writing them up here in this article.

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Is NortonLifeLock-ing In a New Low?




One of my alerts on StockCharts.com is based on the "Turtle Soup" Strategy, which was described by Larry Connors and Linda Raschke in their book Street Smarts in 1996!!

I like this setup because it looks for entries around potential tops and bottoms, and is therefore a trend-ending setup as opposed to trend-following strategies. The fact that it still works today, as it did 25 years ago, makes it a very robust setup.

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Sector Spotlight: Your View Depends on Your Timeframe


On this episode of Sector Spotlight, I review the current rotations for asset classes and sectors. In addition, I explain how your investment horizon and timeframe is crucial in determining how you view the markets.

This video was originally broadcast on May 26th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight webpage, or click this link to watch on YouTube.

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Facebook On its Way to $290










Communication is key...

The Communication Services started to come alive again after a dull period, at least in relative terms.

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Is Everybody Calling and Texting or What?


Communication Services seem to be in high demand, looking at the price chart for XLC.

After the March crash - or was it "just a dip," with hindsight? - XLC rapidly bounced back with a vengeance. I have annotated the chart above with some horizontal support and resistance levels and want to share a few technical observations on those.

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Sector Spotlight: Sector Rotation to Higher BETAs


On this episode of Sector Spotlight, I look at recent rotations in asset classes and sectors. Next, I present updated BETA values for sectors and compare cap-weighted vs equal-weight values. Finally, I then finish up the show with a pair trade review. 

This video was originally broadcast on May 19th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight webpage, or click this link to watch on YouTube.

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This Health Care Stock Only Needs to Break Resistance


Inside the Health Care sector, IDXX is one of the stocks that stands out in a positive way.

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Have You Seen That Small-Cap Growth Stocks are Picking Up Momentum?






Growth-Value is a pre-defined group on the RRG page, showing the relative rotation for the Dow Jones Growth Index vs. Dow Jones Value Index, using the Dow Jones US index as the benchmark.

The last crossover for Value into the leading quadrant, and Growth into lagging, happened in November 2018. That rotation lasted until March 2019, when Growth came back into leading and Value to lagging. And, despite the sharp drop, growth is still moving (deep) inside the leading quadrant while value is inside lagging.

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Sector Spotlight: Tops and Flops in Technology


On this episode of Sector Spotlight, I highlight the Technology sector and picks some Tops and Flops that are worth keeping an eye on using RRG. In the second part of the show, I answers a question from the Mailbag and suggest a new pair trade idea.

This video was originally broadcast on May 12th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight webpage, or click this link to watch on YouTube.

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How Daily and Weekly RRGs Are Aligned







This article appeared in the Chartwatchers newsletter last weekend (5/9) but as it touches on one of the core interpretation basics for Relative Rotation Graphs I wanted to have it in the RRG-blog as well. So in case you missed this weekend's newsletter, here is your second chance ;)


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PFE For The Win?



The above chart shows the daily and weekly tails for PFE overlaid on the same Relative Rotation Graph.

And before you ask... NO, you cannot do this on the site. I did need to be a little bit creative with cutting-copying-pasting-etc. But I thought it was worth it. A bit of "chart-shopping" (as opposed to photo shopping ;) ) so to say.

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Sector Spotlight: Seasonality and Sector Rotation in US Stocks


On this episode of Sector Spotlight, I walk through asset classes and US sectors using RRG in combination with monthly charts. Afterwards, I answer a question from the mailbag regarding the alignment of weekly and daily RRGs. In the seasonality segment, I highlight two sectors that are showing a strong combination of seasonality and rotation on the RRG.

This video was originally broadcast on May 5th, 2020. Click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight webpage, or click this link to watch on YouTube.

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Current Sector Rotation for These Two Sectors is Lining Up with Their Seasonality!





At the end of the month, or the beginning of a new month, I like to look at the expected strength for sectors based on seasonality.

The chart above visualizes the seasonal strength for US sectors in one 3D image. The numbers in the table represent the % of occurrences for each sector outperforming SPY for each month of the year. The typical period used is 20 years, except for the Communication Services and Real-Estate sectors, which have shorter history available.

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XOM is Turning Around Back Into Leading vs. $INDU



The Energy sector keeps coming back on my radar as a sector that's potentially turning around. The sector has been in a relative downtrend for ages already and, from a long-term perspective, things still do not look very good. However, things never look good just before or in a turnaround situation after a prolonged downtrend.

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Sector Spotlight: What Sectors are Rotating This Week?


On this episode of Sector Spotlight, I begin with a quick overview of what happened with asset classes and sectors in the markets last week. Afterwards, I take a look at the current state of sector rotation and finish up with an in-depth look at the relative rotation for all eleven S&P sectors.

This video was originally broadcast on April 28th, 2020. Please note the video cannot expand to full screen on this page; click anywhere on the Sector Spotlight logo above to view on our dedicated Sector Spotlight webpage, or click this link to watch on YouTube.

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